Interim Relief to Toyota Kirloskar Motor: Karnataka HC stays Adjudication of SCNs wrt ITC Recovery on belated IGST paid on Employee Secondment [Read Order]
Interim Relief to Toyota Kirloskar Motor – Interim Relief – Toyota Kirloskar Motor – Karnataka High Court – Stays Adjudication Of SCNs – ITC Recovery – High Court News – Employee Secondment – IGST – TAXSCAN
Interim Relief to Toyota Kirloskar Motor – Interim Relief – Toyota Kirloskar Motor – Karnataka High Court – Stays Adjudication Of SCNs – ITC Recovery – High Court News – Employee Secondment – IGST – TAXSCAN
The Karnataka High Court has issued an ad-interim stay on the adjudication of Show Cause Notices (SCNs) with respect to recovery of Input Tax Credit (ITC) on belated Integrated Goods and Services Tax (IGST) paid on employee secondment under Reverse Charge Mechanism (RCM) by Toyota Kirloskar Motor Private Limited.
Ravi Raghavan, the counsel for the petitioner, secured an interim relief order from the Karnataka High Court in the case challenging Show Cause Notices (SCNs).
The petitioner contends that the issuance of these notices by three different authorities, based on Section 16(4) of the Central Goods and Services Tax Act, failed to consider a recent decision by the Supreme Court. This decision ruled that salaries and other expenses should be subject to the Goods and Services Tax (GST).
Ravi Raghavan argued that the petitioner had filed GST returns subsequent to the Supreme Court's decision, which had clarified the GST applicability to salaries and expenses. In light of this, the interim order was granted by the High Court until further notice. The respondents have the option to seek the vacation of this interim relief.
Vinay Venugopal, the counsel for the first respondent, has accepted notice. Jyoti M. Maradi, the High Court Government Pleader, has accepted notice for the second, fifth, sixth, and seventh respondents. Amit Deshpande, the standing counsel for the third and fourth respondents, has also accepted notice.
The petitioner's legal representatives are instructed to promptly serve copies of the petition papers to the respective chambers of the respondents.
The case will continue to be monitored as it unfolds in the Karnataka High Court, potentially setting a precedent for GST disputes related to salaries and expenses in India.
To Read the full text of the Order CLICK HERE
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